Although it is true that a bankruptcy will show on your credit report for up to 10 years, most people who file already are dealing with a bad credit score due to lay payments, charge-offs, liens and other financial problems. For those who have a very low credit score, a bankruptcy, in the end, may actually help. You now no longer owe your unsecured consumer debt, and
rebuilding your credit may be faster than you think. It is important that your credit report is updated to reflect the fact that you do not owe these obligations. Once this is updated, you have the opportunity to begin the rebuilding process.
As you now have more access to the money you earn, if you carefully manage your budget, you can get back on track fairly quickly. The first thing you will notice is credit card offers for secured cards. You will have to secure the card with your own funds, and pay to use your own funds. This allows you to have a credit card which can be necessary for certain purchases such as car rental or hotel, should you have to travel, or buying online.
As you use a secured card, and pay it off each month, you are building up your credit. Eventually you will get better credit offers. The main point in rebuilding credit is to never let any bill get overdue. Pay everything on time. This is the workable strategy, and works every time. If you have inaccurate information on your credit report, these can be changed by contacting the credit reporting company to correct any errors. They are obligated under law to have accurate information.
One point to consider is that it may be better to file bankruptcy than it is to have a foreclosure. Lenders view a foreclosure as a serious problem if later you are back in a better financial condition and once again want to purchase a home. All of these issues can be discussed with you on a personal basis when you
contact Rick Hodge, Attorney at Law. We serve the Kansas City community in bankruptcy, foreclosure defense and other related legal matters.